Joint Economic Committee to Reveal the Individual Faces of the Subprime Mortgage Crisis by Examining Cleveland's Foreclosure Nightmare

Press Release

For Immediate Release Contact: Israel Klein
July 24, 2007 (202) 224-5171
MEDIA ADVISORY:
JOINT ECONOMIC COMMITTEE TO REVEAL
THE INDIVIDUAL FACES OF THE SUBPRIME
MORTGAGE CRISIS BY EXAMINING
CLEVELAND'S FORECLOSURE NIGHTMARE
JEC to Focus on the Impact of the Subprime Lending Crisis on One of the Hardest
Hit Communities in the Nation -- Cleveland, Ohio
Schumer: We Must Bring Attention Back to the Real People and Neighborhoods
Affected by Bad Loans and Deceptive Lending Practices
Washington, D.C. - As the number of American families losing their homes because of
irresponsible loans and deceptive lending practices increases, U.S. Senator Charles E. Schumer
(D-NY), Chairman of the Joint Economic Committee, will hold a hearing, "A Local Look at
the National Foreclosure Crisis: Cleveland Families, Neighborhoods, Economy Under Siege
from the Subprime Mortgage Fallout" to spotlight the real people at the center of the subprime
foreclosure crisis TOMORROW, July 25, 2007 at 10:00am in Room 216 of the Hart Senate
Office Building. There have been widespread and serious problems in the subprime mortgage
market over the past several months, but little attention has been paid to the economic impact of
foreclosures caused by subprime loan defaults on local communities across the nation. The JEC
will examine the destructive impact of the foreclosure boom on Cleveland, Ohio, which is
currently among the cities with the highest rates of subprime foreclosures in the country. The
hearing will investigate the impacts of foreclosures on homeowners, neighborhoods, and cities,
and explore federal policy responses.
WHAT: Joint Economic Committee Hearing: "A Local Look at the
National Foreclosure Crisis: Cleveland Families, Neighborhoods,
Economy Under Siege from the Subprime Mortgage Fallout"
WHEN: Wednesday July 25, 2007 at 10:00am
WHERE: Room 216, Hart Senate Office Building
Witnesses:
Honorable James Rokakis, Treasurer of Cuyahoga County, Ohio
Honorable Anthony Brancatelli, Cleveland City Council
Member Representing Slavic Village, Ohio
Mrs. Audrey Sweet, Resident of Maple Heights, Ohio
Ms. Barbara Anderson, Resident of Slavic Village, Ohio
Kenneth D. Wade, CEO of NeighborWorks ® America
Over the last year, Ohio has consistently ranked in the top 10 of states with the highest rate of
foreclosures in the country. Cities such as Dayton, Akron and Cleveland are ranked in the top 20
metropolitan cities nationally with the highest number of foreclosures in 2006.
According to June 2007 data, Cleveland has been hit particularly hard by the increase in
foreclosures. In particular, Cuyahoga County has the largest number of new foreclosure filings in
the country. With 3,261 new unique address foreclosure filings in June, the county has one new
foreclosure filing for every 169 households. Last year alone, Cuyahoga County had 13,000
foreclosures.
Nationally, foreclosures continue to rise as more and more homeowners' loans reset to sharply
higher rates. The Center for Responsible Lending estimates that the 2.2 million households in the
subprime market that could fall victim to foreclosure over the next several years could lose as
much as $164 billion, primarily in lost home equity.
www.jec.senate.gov
# # #

Source